McKesson 2014 Annual Report Download - page 11

McKESSON CORPORATION
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Imaging and Workflow Solutions: We offer medical imaging and information management systems for healthcare enterprises,
including a picture archiving communications system, a radiology information system and a comprehensive cardiovascular
information system. Our enterprise-wide approach to medical imaging enables organizations to take advantage of specialty-
specific workstations while building an integrated image repository that manages all of the images and information captured
throughout the care continuum.
Business Performance Services: We help providers focus their resources on delivering healthcare while managing their
revenue cycle operations and information technology through a comprehensive suite of managed services. Services include full
and partial revenue cycle outsourcing, remote hosting and business office administration. We also provide a complete solution
for physician practices of all sizes, whether they are independent or employed, that includes software, revenue cycle outsourcing
and connectivity services. Software solutions include practice management and EHR software for physicians of every size and
specialty. Our physician practice offering includes outsourced billing, collection, data input, medical coding, billing, contract
management, cash collections, accounts receivable management and extensive reporting of metrics related to the physician practice.
We also offer a full suite of physician and hospital consulting services, including financial management, coding and compliance
services, revenue cycle services and strategic services.
Enterprise Information Solutions: We provide comprehensive clinical and financial information systems for hospitals and
health systems of all sizes. These systems are designed to improve the safety and quality of patient care and improve clinical,
financial and operational performance. Clinical functionality includes a data repository, care planning, physician order entry and
documentation, nursing documentation with bar-coded medication administration, pharmacy, surgical management, emergency
department and ambulatory EHR systems, and a Web-based physician portal. Revenue management solutions are designed to
improve financial performance by reducing days in accounts receivable, preventing insurance claim denials, reducing costs and
improving productivity. Solutions include online patient billing, contract management, electronic claims processing and coding
compliance checking. These solutions streamline patient access and help organizations to forecast financial responsibility for
constituents before and during care, allowing providers to collect their reimbursements more quickly and at a lower cost. We also
provide professional services to help customers achieve business results from their software or automation investment. A wide
array of service options is available, including consulting for business and/or clinical process improvement and re-design as well
as implementation, project management, technical and education services relating to all products in the Technology Solutions
segment as well as providing the technical infrastructure designed to maximize application accessibility, availability, security and
performance. In addition, workflow management solutions assist caregivers with staffing and maintaining labor rule continuity
between scheduling, time and attendance and payroll. We also offer a comprehensive supply chain management solution that
integrates enterprise resource planning applications, including financials, materials, human resources/payroll, scheduling, point
of use, surgical and anesthesia services and enterprise-wide analytics.
Business Combinations, Sale of an Equity Investment and Discontinued Operations
We have undertaken additional strategic initiatives in recent years designed to further focus on our core healthcare businesses
and enhance our competitive position. We expect to continue to undertake such strategic initiatives in the future. Our Celesio
acquisition and these additional initiatives are detailed in Financial Notes 2, 3 and 5, “Business Combinations,” “Discontinued
Operations” and “Impairment and Sale of an Equity Investment,” to the consolidated financial statements appearing in this Annual
Report on Form 10-K.
Competition
In every area of healthcare distribution operations, our Distribution Solutions segment faces a highly competitive global
environment with strong competition, both in price and service, from international, national, regional and local full-line, short-
line and specialty wholesalers, service merchandisers, self-warehousing chains, manufacturers engaged in direct distribution, third-
party logistics companies and large payer organizations. In addition, this segment faces competition from various other service
providers and from pharmaceutical and other healthcare manufacturers as well as other potential customers of the segment, which
may from time-to-time decide to develop, for their own internal needs, supply management capabilities that would otherwise be
provided by the segment. Price, quality of service, innovation and, in some cases, convenience to the customer are generally the
principal competitive elements in this segment.
Our Technology Solutions segment experiences substantial competition from many firms, including other software services
firms, consulting firms, shared service vendors, certain hospitals and hospital groups, payers, care management organizations,
hardware vendors and internet-based companies with technology applicable to the healthcare industry. Competition varies in size
from small to large companies, in geographical coverage and in scope and breadth of products and services offered.